The recent dismissal of Thailand’s Prime Minister Srettha Thavisin by a court has stirred political waters, yet it is unlikely to significantly alter the country’s stance on cryptocurrency regulation, experts indicate.

Thavisin’s removal came as a shock after the Constitutional Court in Bangkok found him guilty of ethical violations for appointing a previously incarcerated lawyer to his Cabinet. Following the verdict, Thavisin expressed uncertainty about whether his policies would be upheld by his successor, as reported by CNN. The ruling Pheu Thai-led coalition will now need to nominate a new Prime Minister, who must then be ratified by the 500-member parliament. The specific repercussions for crypto regulations under this transition remain ambiguous.

Tanawat Sutunthivorakoon, CEO of Bitazza Thailand, noted, “The departure of PM Srettha is unlikely to have a substantial impact on digital asset regulations.” This sentiment was echoed by Sanjay Popli, Chief Executive Officer of Cryptomind Advisory, who suggested, “Given that the Pheu Thai party remains in power, it’s improbable that the new Prime Minister will hold drastically different views on cryptocurrency.”

In the previous week, the Thai Securities and Exchange Commission (SEC) unveiled a sandbox initiative designed for crypto enterprises. Sutunthivorakoon highlighted that the SEC has demonstrated consistent support for the crypto sector over the past six years, irrespective of the ruling party’s composition.

Thailand ranks 10th in Chainalysis’ 2023 Global Crypto Adoption Index Top 20, and several crypto exchanges have secured licenses to operate within the country. The nation has strived to strike a balance between nurturing the crypto ecosystem and curbing fraudulent activities. While it has permitted institutional investors and ultra-high-net-worth individuals to engage in crypto exchange-traded funds (ETFs), it also mandates that custodians have contingency plans in place.

Nares Laopannarai, President of the Digital Asset Association of Thailand, anticipates that overall crypto regulations will remain stable. However, he cautioned that PM Srettha’s proposed Digital Wallet Policy, intended to stimulate the economy, might face disruptions. Laopannarai reported that the policy, which included a 10,000-baht (approximately $285 USD) registration incentive, had already garnered 25 million sign-ups. He noted, “This initiative may encounter delays, modifications, or even cancellation due to the recent political developments.”

Popli also pointed out that the appointment of a new SEC director has brought greater clarity to the regulatory landscape. He emphasized that the Sandbox initiative reflects Thailand’s dedication to fostering innovation while ensuring comprehensive oversight.